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Vornado Realty Trust is under contract to sell the Center Building in Long Island City for nearly $173 million

Vornado Under Contract to Divest LIC Offices for $173M 

Vornado Realty Trust has entered into an agreement to sell the Center Building, an eight-story office building at 33‑00 Northern Blvd. in Long Island City. Leased entirely to government tenants including the Metropolitan Transportation Authority, the 498,000-square-foot property is under contract for $172,750,00, Vornado said. 

The office and retail REIT expects to close the sale in the third quarter, and to recognize a financial statement gain of approximately $15,000,000 and a tax gain of approximately $74,000,000. Vornado didn’t identify the buyer. 

Michael J. Franco, Vornado’s president and CFO, said on an earnings call Tuesday that the sale was part of a drive to monetize non-core assets. “After purchasing the asset in 2015, we extended the major leases over the past few years to create value and so our job here was done,” he said.  

Vornado has another $750 million of non-core sales planned “in the near future,” said Franco. 

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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